Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

Which of the following would typically appear in the Deferred Revenue T-account?

A debit when cash is received from customers for goods already delivered

A credit when cash is received in advance of providing goods or services

A debit when revenue is earned and recognized

A credit when goods or services are delivered to customers

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Verified step by step guidance

Understand the concept of Deferred Revenue: Deferred Revenue represents cash received by a company in advance of delivering goods or services. It is recorded as a liability because the company has an obligation to fulfill the delivery of goods or services in the future.

Analyze the T-account structure: A T-account for Deferred Revenue will have debits on the left side and credits on the right side. Credits increase the liability, while debits decrease it.

Identify the scenarios: When cash is received in advance of providing goods or services, it is recorded as a credit in the Deferred Revenue T-account because the liability increases. When revenue is earned and recognized (goods or services are delivered), it is recorded as a debit because the liability decreases.

Match the options to the T-account entries: A credit is recorded when cash is received in advance of providing goods or services, and a debit is recorded when revenue is earned and recognized.

Conclude the correct entries: The correct entries in the Deferred Revenue T-account are: (1) A credit when cash is received in advance of providing goods or services, and (2) A debit when revenue is earned and recognized.